Loan Advice

golden_girl

Hi,

On Martins website re when is it worth shifting a loan it says the following:

To confirm your repayments and ask how many remain.
Multiply the two together and this is the cost of sticking with your existing lender. E.g. 48 months at £150 equals £7,200.

Looking at my loan agreement I know I have 77 months left. The Cash Loan is £187.18 and the Insurance is £48.71. (I have tried to get them to cancel this but they said I would have to redo the loan and my interest rate would go from 7.765% to 10.9%.)

Would I multiply 77 at £187.18 or £235.89(£187.18 plus £48.71).

Any advice would be appreciated thank you

Old_iron_balls

golden_girl wrote:

(I have tried to get them to cancel this but they said I would have to redo the loan and my interest rate would go from 7.765% to 10.9%.)

how hard have you tried ?
Some of us have managed to get our PPI cancelled without taking out another loan. and got a refund
It can be done.
It may be worth another try ?

This thread will help

http://forums.moneysavingexpert.com/showthread.html?t=117175

golden_girl

Hi,

Apologies if this is long story...

Now I am totally confused on who to believe is giving out the right advice.

About a month ago I telephoned my loan provider to ask if I could cancel the PPI. I was told no as the whole agreement would need to be cancelled and the loan redone resulting in a higher interest rate.

I then went into my local branch who also said they same thing as above.

I telephoned again today to ask for a settlement figure. She had a look at my whole account with them and commented on what a valued customer I was and also my account is a platinum account.
I told her I wanted to cancel the PPI but I did not want to lower my payments and wanted it kept to the same monthly payment of £235.89. I also want the refund of the PPI taken off my loan amount.

She said I could cancel just the PPI and carry on paying the same amount. I asked her if this happened and I pay the same amount it would be paid off earlier than my original term. Would I be charged at a later date for paying my loan off. She said there may be a charge.

I have just looked at my T&C's for my loan and it says:

(You may end this agreement at any time. If you decide to end this agreement early we will charge you a fee equal to 30 days interest on the outstanding balance of the loan. If your barclayloan payment protection is ended the whole agreement will end. You can then make a new loan application for any outstanding balance and for any further money that you may require.)

I am abit worried about this what if they cancel the PPI and then tell me as per the T&C's I have to pay the whole amount back.

Also what standalone companies have other people got policies with?? My Hubby is abit wary of changing our PPI.

Many Thanks in advance for your comments.

Bokken_2

I think and this is only my opinion,you have it appears to me lost your way slightly here.
Although you are talking about the repayments and PPI and the possible problems this may cause.
You need to have a long hard look at the amount you are repaying.
Monthy you pay £230.92 x 77 months for a loan that is a WHOPPING repayment of £17780.84 !!! Cut off the PPI and you will repay less .A saving of £3367.98.
I would have a look at the loans available from A&L amongst others that are offering a low APR of about 6.5% or if you do your homework here on this site you could move that loan to 0% credit cards and pay no interest payments at all on the amount of the loan thereby saving yourselves £1000's.

golden_girl

Many Thanks for you replies :rolleyes: